1. The Field of the Invention
The present invention relates generally to financial instruments. More specifically, the present invention relates to methods and systems for a financial instrument having both loan balance and pre-paid characteristics.
2. The Relevant Technology
Pre-paid financial instruments such as debit cards provide an alternative payment method to cash when making purchases. When making a purchase, cash withdrawal, account to account transfer, or other transaction with a pre-paid instrument, such as a debit card, the debit card holder is typically required to have a cash balance in an account associated with the debit card that exceeds the purchase amount. A debit card is often referred to as a check card because funds used to make a purchase are typically withdrawn directly from the cardholder's bank account.
In some cases, a transaction fee is charged when the pre-paid financial instrument, such as a debit card, is used. This allows the issuer of the pre-paid financial instrument, or a third party that processes any transactions, to make a profit based on the usage of the pre-paid instrument.
The subject matter claimed herein is not limited to embodiments that solve any disadvantages or that operate only in environments such as those described above. Rather, this background is only provided to illustrate one exemplary technology area where some embodiments described herein may be practiced.